Newsletter No. 52

CUHK NEWSLETTER What Interna l Audi t I s Abou t An interview with the director of the new Internal Audit Office Last October the Administrative and Planning Committee (AAPC) endorsed a proposal for conducting internal audit in the University. Internal audit will be conducted by authority of the vice-chancellor, and the AAPC may suggest topics of audit. Mr. Louis Heung, senior assistant bursar, has been appointed on a split time basis as director of internal audit and will report in this regard to the vice-chancellor direct. Here, Mr. Heung talks to CUHK Newsletter about the mission of the new Internal Audit Office, which will become operational in mid-March 1994. • CUH K Newsletter • Mr . Louis Heun g Reason for Establishment " . . t hevice-chancellor has been aware for a number of years that there is a need for an independent office to be installed to review operation in the University's various departments and units, and to ensure that resources are effectively utilized." • I s the establishment of the Internal Audit Office in any way related t o th e cas e o f frau d last yea r involvin g th e forme r head o f th e Mathematic s Department , th e ICA C investigations int o th e affair s of th e Departmen t o f Extramural Studies, an d recen t complaint s o f graduat e student s from Chin a tha t the y di d no t ge t th e salarie s tha t thei r respective departments had promised to give? • Thes e incident s ha d thei r impact , bu t wer e no t th e primary force whic h prompte d th e Universit y t o se t u p th e Internal Audi t Office . I n poin t o f fac t Prof . Charle s Kao, th e vice-chancellor , ha s bee n awar e fo r a number o f years tha t ther e i s a nee d fo r a n independen t offic e to b e installed t o revie w operatio n i n th e University' s variou s departments an d units , an d t o ensur e tha t resource s ar e effectively utilized . Thi s come s i n th e wak e o f th e development o f th e Universit y i n recen t years , whic h i n turn give s rise t o th e expansio n o f department s an d units , and th e decentralizatio n o f man y administrativ e functions from th e centra l t o th e facultie s an d department s themselves. Inter-relationshi p amon g th e department s and unit s ha s becom e complicate d an d thei r clos e cooperation i s mor e importan t tha n before . I t wa s understood whe n I was recruited b y th e University that i t woul d b e par t o f m y dutie s t o se t u p th e Internal Audit Office. • Wh y wasn' t th e offic e set up earlier , whe n ther e ha d already been plans to do so for a number of years? • Ther e ar e establishe d step s whic h mus t b e followe d before th e Universit y ca n se t u p a ne w unit , b e i t academic o r administrative . Furthermore , a s a n institution of highe r education , th e Universit y woul d naturally giv e priorit y t o teachin g an d researc h projects. The Bursar y als o happene d t o b e ver y short - handed whe n I wa s firs t appointe d an d muc h tim e had t o b e spen t o n priorit y wor k there . Al l thes e would hel p t o explai n wh y th e offic e i s no t established until now. • I s there a similar offic e in othe r institution s o f highe r education i n Hong Kong ? • Ye s indeed . I n som e institution s thi s i s par t o f thei r Finance Offices , a t othe r place s i t function s independently. Comparatively speaking , th e Chines e University i s lat e i n settin g u p it s interna l audi t mechanism. NO.52 MARCH 1994 6